really struggling with the payments in a joint IVA

[paula25]

We are currently in a joint IVA, but are really struggling with the payments. We now think bankruptcy may be our only option, which we have tried to avoid, but seems inevitable now. My husbands job pays a car allowance, on the provision that the car is under 5 years old (stated in his terms of employment). It is essential for his job as a construction site manager. His car is worth about £7500K. Is there any possiblility he would be able to keep his car if we did go bankrupt?

[MelanieGiles]

Hi paula and welcome to the forum

Sorry to hear that you are struggling with your payments. Have you approached your Supervisor to see if they could be reduced? And why are you struggling with the payments?

It is unlikely that your husband would be able to retain his car under bankruptcy proceedings, but worth bringing the OR's attention to his contract of employment. Are there any friends or family who could help you out with this.

[paula25]

Hi,
Just typed out a reply, but not sure where it has gone?

Thanks for the advice Melanie. I must admit I have not contacted my supervisor about this yet. We have spent the weekend worrying over this, and decided we needed to test the waters on the forum first to see what we could find out!
I will contact my IP supervisor and discuss with them the increases in expenditure we have had since starting our IVA, which was in September. Our outgoings have increased by aprox £130 since our IVA was accepted - all on petrol, gas/electric and car insurance premiums. We have not even had new costs for this coming years council tax and water rates which are inevitably going to increase, which will make us even more worse off. Neither of us are due a pay review until at least April for me and July for my husband. Friends and family are not aware of our IVA, and although could offer emotional support, would more than likely not be able to offer additional financial support.

[Reviva UK]

Hi Paula25

Sorry to hear of the challenges you are both having.

Regarding the car one can certailnly purchase a 5year old car for a lot less than £7500. I personally don't drive new cars because of the depreciation. I recdently purchased a vauxhall Omega ( factory LPG converted) for around £3000 and under the 5 year limit. If you do your homework you can probably get something that will cover you for a year quite nicely.

If you decide you want to go down the Br route you would the have some left over for the £970 court costs etc.

Do you own a house?

[Adam Davies]

Hi
Speak with your IP,your expenditure has increased and you are unable to make the full payments.You will need a variation meeting to reduce your payment down to an affordable level.
Try this route before considering bankruptcy
Regards

[MelanieGiles]

Could you tell us how much you are currently paying into your IVA and how much your overall debts are?

[paula25]

Thanks for all of your advice, certainly food for thought! We owed 96k and pay £1365 per month in to our IVA.

[paula25]

Oh sorry just re-reading your replies, yes we do own our own house, very little equity, poss 5-10K. Understand this will have to be sold if went BR - hence not wanting the BR route in the first place

[MelanieGiles]

Paula

I cannot see that you need to be considering bankrutpcy. You are paying very high contributions into your IVA, and I feel sure that these could be reduced to a manageable elve to take account of your increased utility bills. I would certaintly look at this if I were your IP, so give them a ring tomorrow to see what they say.